Part IV Winding Up of Companies Registered under the Companies Acts

Chapter VI Winding Up by the Court

Liquidation committees

142 Liquidation committee (Scotland).

F1(1)

This section applies where a winding up order has been made by the court in Scotland.

(2)

If both the company's creditors and the company's contributories decide that a liquidation committee should be established, a liquidation committee is to be established in accordance with the rules.

(3)

If only the company's creditors, or only the company's contributories, decide that a liquidation committee should be established, a liquidation committee is to be established in accordance with the rules unless the court orders otherwise.

F2(3A)

A “liquidation committee” is a committee having such functions as are conferred on it by or under this Act.

(4)

A liquidator appointed by the court other than under section 139(4)(a) must seek a decision from the company's creditors and contributories as to whether a liquidation committee should be established if requested, in accordance with the rules, to do so by one-tenth in value of the company's creditors.

(5)

Where in the case of any winding up there is for the time being no liquidation committee, the functions of such a committee are vested in the court except to the extent that the rules otherwise provide.

(6)

F3F4A “liquidation committee” is a committee having the powers and duties conferred and imposed on it by this Act, and such of the powers and duties of commissioners in a sequestration as may be conferred and imposed on such committees by the rules.